Pakistani rupee continued its free fall in the interbank market on Monday as it closed at Rs 172 against the greenback.
The rising demand for the US dollar and the surging oil prices in global markets led to this devaluation of the local currency. The rupee has plummeted to a historic low against the USD at Rs 172.00/172.15 (10:43 PST) in comparison to its value at Rs 171.18 during the last session.
The lack of a timeframe for the conclusion of Pakistan’s talks with the International Monetary Fund (IMF) in addition to the delay in releasing the tranche is exacerbating pressure on the local unit.
No timeframe set for the conclusion of IMF negotiations and delay in the release of the committed
Former Treasury Head-Chase Manhattan Bank Asad Rizvi said, “As per Finance Ministry tweet, negotiations between Pakistan and IMF are moving forward positively”.
He added that a delay owing to harsh conditions during the pandemic is extremely unfair and in contradiction to the press release of Managing Director of IMF, Kristalina Georgieva’s in which she talked about commitment to supporting emerging economies during COVID-19. Asad said that a waiver should be given.